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4 Habits of a Financially Free Person

hands of woman by laptop, calculator, receipts and money in cup showing 4 habits of a financially free person

It’s here! The BEST month of the year. . . it’s Financial Literacy month! Woooohooo!!! WHY am I soooo excited about this month; this blessed, money matters, let’s talk about our coins month?

Well, because I’m a Money Mastery Coach and my work specifically involves empowering people to do better with their money. I help people to make better financial decisions, learn the Principles of Money, and empower themselves and their families.

Why is this even a thing? Well, because in the capitalist free world, money is leverage. It’s a tool – arguably THE greatest tool – for advancing yourself and your family and giving yourself better options for a better life. The bible says “Money solves all things” and in our world, there’s LOTS of problems that money helps us to solve!

So, where to start? Well, for starters, what are the differences in the way people who are financially free deal with their money, and the way that non-financially free people deal with theirs?checkbook with money showing 4 habits of the financially free person
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1. A financially free person has expenses directly related to creating income.

Simply put, apart from food and clothing, financially free people spend money to make more – yes, even on their vehicle and home expenses. If you have a business and a car and a home office, that car and mortgage payments can be written off under the business when tax time comes around.

2. A financially free person sets aside money EVERY time they RECEIVE money.

Most non-financially free people SPEND first, out of any cash they get. Financially free people do the opposite and set aside money first, either in savings and /or to be used for investing. This practice ensures that they’re NEVER without some source of money, AND it drives them to figure out how to make even more money to cover whatever expenses they may still have, AFTER they’ve taken out money to put aside.

laptop on a desk with a finance flowchart showing habit of a financially free person
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3. A financially free person ONLY carries debt related to earning income.

Financially free people borrow money to put into investments – business, real estate, buying shares in a company, etc, which will make them more money in the future. Non-financially free people on the other hand, borrow money to spend… to pay someone else. In turn, they also now have to repay the person or institution they borrowed the money from. It’s a never ending cycle that is a lose-lose situation.

4. Financially free people make themselves rich.

They eat at home or in their own restaurants or those of their friends. They spend money in their own businesses and those of their friends. They use their money to make more money, and they invest in themselves and their children on a consistent basis, through education and experiences.

Non-financially free people however, make everyone else rich. They spend money in everyone else’s businesses, buying every one else’s products. They spend far less on education for themselves and their children, and they have no businesses, so they also must depend on others for their income.

Now, which side of the fence would you prefer to be on? Which one would be more beneficial to you and your family?

Let’s use this month of April to strategize, save, and begin to change small habits and bigger habits alike. Let’s all work towards becoming financially free!

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